Do You Have A Strong Unique Selling Proposition (USP)

What Is A USP?

One of the most underrated, yet most powerful marketing concepts is the Unique Selling Proposition or USP.

Your USP is one of your key differentiators in the marketplace.

It is a simple phrase or statement that answers the key question your prospects have, “What do you do differently and how does it benefit me?”

The term was first coined by famous advertiser, author and copywriter, Rosser Reeves. (You should do a search on the Internet for Rosser Reeves and USP and find out more.)

It is the elevator pitch of your business. It should not be vague.  It should be as specific.

The key to your success is making sure that you deliver on your USP.

Here are some famous examples:

FedEx: • When it absolutely, positively has to be there overnight.

Avis Car Rental • We try harder.

AllState Insurance • You are in good hands with AllState.

The USP is directly tied to the benefits that your product or service offers. It is the implicit promise that you are providing to your clients and prospects in exchange for them doing business with you.

You want to avoid appearing as a commodity product or service. No two businesses are absolutely identical, so you should not appear to the marketplace as such.

Developing A USP It is actually surprisingly simple to develop a USP. You should however take some time and not rush it. Your USP is not about you, it is about your client or customer.

It summarizes the benefit they will receive from doing business with you. It states a claim and positions you in the marketplace.

Imagine planting a flag on a piece of territory. You will plant your USP on an area that is relevant to your prospects, but that no one else is currently claiming.

Here are some sample questions you can ask yourself as you begin to think about your USP. You can find plenty of information online to help you in your development of a USP.

1. What is it you do differently than competitors who provide a similar product or service.

2. Which of these differences is valuable and relevant to your prospects and clients.

3. Are there areas of opportunity in the marketplace, relevant to your prospects that you are uniquely qualified to fill?

4. Can you summarize these unique benefits in a simple and easily understood manner?

How A Commodity Became Unique

Take the coffee shop marketplace.

Although Starbuck’s rules the roost, there are new cafes and coffee shops springing up all the time.

Coffee is considered a true commodity product. Commodities are traditionally basic goods such as coffee, sugar, wheat and corn, that are traded on an exchange trading floor. There are set parameters, lot sizes and business is transacted globally.

Yet somehow Starbuck’s has managed to overcome this commodity perception, and charge premium pricing.

So how does Starbuck’s and its competitors in the coffee industry overcome this? Primarily by education.

Consumers are educated on the differences in roasting times, where the beans come from, acidity levels, etc. all designed to change the perceptions and buying criteria for a cup of coffee.

Your Business Is Not A Commodity

Your prospects and clients may want to reduce the differentiation that you offer.

Question: Isn’t the USP the same same as Branding?

Answer: No.

There is some relation but they are different. A brand is what your company stands for, not necessarily what makes it unique.  This can be evidenced in a logo or trustmark. A logo may build a perception of difference from your competition, but unless you are well known it is not typically a factor in the sale. Unless you are delivering on your promises, your logo can quickly come to stand for things you don’t want it to.

A USP on the other hand is an implied or stated promise irrespective of product or service offering.

Starbuck’s apparent USP is pretty simple. They provide an easy way to get a great cup of coffee.

When Starbuck’s arrived on the scene, your typical cup of coffee was a bland, watery, tasteless cup of brown water. You had to go to a local diner, quickie mart or gas station to get one. The idea of coffee and premium being used in the same sentence was remote.

The value was about 70 cents for an 8 ounce cup. The ideas of someone paying two, three or five dollars for a cup of coffee was unheard of. Starbuck’s based on the coffee shops and coffee culture of Europe changed all of that.

Suddenly it became very easy, simple and pleasant to get Grande’s and Venti’s.They did not have small, medium and large, they had something else.   Their offering and their expression of the offering was something very unique.

When you walked into a Starbuck’s you knew something was different. Cappuccino’s, lattes and espresso’s. The atmosphere, the aroma, the style.  They don’t have counterstaff they have “Baristas”. They show the beans and tell you about them. A very different experience.

They actually made their USP tangible. It was all in the delivery. If they did not delivery on their promise of a great cup of coffee, then despite everything else, there would be few repeat customers.

That is the value of a strong USP. Repeat customers and increased profits.

Key Takeaways

1. All businesses should have a USP to differentiate themselves from the competition.

2. The USP is not about you it is about the benefits, implied or real, that your prospects will receive.

3. Every product, service or company can be differentiated with a little thought.

4. Your USP is a promise, be prepared to deliver on it.

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